Overlay
Sector trends

UK Industrial Strategy: Opportunities for manufacturers

The UK Government plans to support the transformation of high-potential sectors over the next decade through initiatives including funding for Advanced Manufacturing.

What is the Advanced Manufacturing Plan?

The UK government's new Industrial Strategy marks a pivotal moment for manufacturers, providing a robust framework designed to bolster confidence and spur innovation.

At its core, the Advanced Manufacturing Plan (AMP) is a bold commitment to reindustrialise Britain through innovation, sustainability, and resilience.

With over £4.3bn earmarked for advanced manufacturing over the next decade, the plan targets key sectors such as aerospace, automotive, advanced materials, and batteries. It aims to transform the UK into a global hub for high-value, low-carbon manufacturing.

As businesses navigate an evolving economic landscape, this clear direction signals to manufacturers that the government is committed to supporting long-term growth.

With initiatives like the Future Flight Challenge and automation/robotics support, the strategy is about building a digitally-enabled, AI-powered, and net zero-ready industry that can compete with the best in the world.

Laura Capper, our Head of Manufacturing and Construction, says: “A clear industrial strategy sends a strong signal of intent. It gives manufacturers the confidence to invest, innovate, and plan for the long term — we’re here to support them in turning that ambition into action.”

Why this matters now

The global manufacturing landscape is undergoing a seismic shift. Supply chain vulnerabilities exposed by the pandemic, geopolitical tensions, and the race to net zero have forced governments to rethink industrial policy. The UK’s AMP is a strategic response to these challenges, designed to:

  • Rebuild domestic capabilities in critical sectors
  • Accelerate the adoption of Industry 4.0 technologies
  • Create high-skilled, future-proof jobs
  • Enhance energy security and sustainability

Strengthening supply chains and trade resilience

One of the most strategic elements of the Industrial Strategy is its focus on supply chain resilience and trade competitiveness. The plan recognises that advanced manufacturing cannot thrive in isolation — it depends on robust, agile, and secure supply networks.

The AMP supports:

  • Onshoring and nearshoring of critical components to reduce dependency on volatile global markets
  • Diversification of suppliers to mitigate geopolitical and logistical risks
  • Digital supply chain technologies such as blockchain and AI for real-time visibility and risk management
  • Trade partnerships and export support to help UK manufacturers access new markets and scale globally

By investing in smarter and more resilient supply chains, the UK is positioning itself not just as a manufacturer but as a trusted global trading partner in the industries of the future.

The trade hub

Get specialist insights and solutions that could help you achieve your growth ambitions.

The role of industry 4.0

Digital transformation is the backbone of the AMP. From AI-driven design and robotics to additive manufacturing and digital twins, the plan encourages widespread adoption of smart technologies.

This could not only boost productivity but also enable mass customisation, predictive maintenance, and real-time supply chain visibility.

To facilitate adopting technology into your business, you could explore funding and training opportunities available through initiatives like the Made Smarter programme and Skills Bootcamps.

Investing in technology and training prepares manufacturers to thrive in an increasingly competitive and technologically advanced landscape. For manufacturers, this is a call to action: invest in digital capabilities or risk being left behind.

Skills and talent: the human engine

To truly leverage the potential of Advanced Manufacturing, addressing the skills gap is paramount. Make UK, the national industry body, estimates that filling this gap could contribute an additional £6bn annually to the UK economy.

In response, the Government, industry leaders, and training providers must collaborate to ensure that the workforce is equipped with the necessary skills to keep pace with rapid innovation.

The £275m toward apprenticeships, T‑levels, and technical qualifications, plus a new Skills Commission, present opportunities for stronger collaboration between industry and academia to ensure that curricula align with the needs of tomorrow’s factories.

This is a golden opportunity to inspire a new generation of engineers, data scientists, and technicians.

Sustainability as a competitive advantage

The AMP places sustainability at the heart of industrial growth. By supporting low-carbon technologies, circular economy models, and sustainable supply chains, the UK aims to lead the global transition to more sustainable manufacturing. This is not just good for the planet — it’s good for business.

Companies that align with these goals could not only benefit from government incentives but also gain a competitive edge in an increasingly eco-conscious market.

Align business plans with national priorities

“It’s crucial for manufacturers to align their business growth plans with the national priorities outlined in the Industrial Strategy and AMP,” Laura says. “By strategically mapping business objectives to these key areas, manufacturers could tap into public and private investments that are likely to flow into these sectors.”

Collaboration is vital. By connecting with local businesses, academia and industry partners, manufacturers could uncover new income streams and explore opportunities to pivot their operations to maximise the benefits of the industrial strategy.

It’s a shared mission to build a more resilient, innovative, and inclusive industrial future.

The new UK government industrial strategy presents a unique opportunity for manufacturers to innovate and grow. By strengthening supply chain resilience, investing in skills and technology, and aligning business plans with national priorities, manufacturers could position themselves for success.

“British manufacturers are the lifeblood of our economy, and we’re committed to helping our manufacturing customers navigate the challenges and embrace the opportunities presented by an evolving and changing sector,” Laura says.

For more detail read our article in Mediaplanet’s Future of Manufacturing: Building beyond the industrial strategy report: Future of Manufacturing

 

Ready to get your business fit for the future? Find the latest insights, expertise and tools here.

Subscribe to our newsletter

Be the first to know! Sign up to video podcasts and newsletters as they’re published.

This material is published by NatWest Group plc (“NatWest Group”), for information purposes only and should not be regarded as providing any specific advice. Recipients should make their own independent evaluation of this information and no action should be taken, solely relying on it. This material should not be reproduced or disclosed without our consent. It is not intended for distribution in any jurisdiction in which this would be prohibited. Whilst this information is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of NatWest Group, as of this date and are subject to change without notice. Copyright © NatWest Group. All rights reserved.

scroll to top